Home Equity Loans Variable Rate Fact Sheet

  1. The rate of interest can be as high as 1.5% over the prime lending rate published in the Wall Street Journal. The Credit Union reserves the right to lower the interest rate charged based on market conditions.

  2. The rate of interest on your home equity loan can change on a semi-annual basis. January 1st and July 1st are the dates when this change can occur. The rate is determined 45 days before the rate change date.

  3. The maximum increase or decrease in the annual percentage rate during any 6 month period is 1.00%

  4. Payment -

    When the predetermined interest rate is...

    Percentage your payment will be...

    12% or Less 1.25% of your balance
    12.25% - 15% 1.50% of your balance
    15.25% - 18% 1.75% of your balance

    Your payment will be determined by taking the percentage based on the predetermined interest rate and multiplying it by the outstanding balance as of the end of the month following the last advance, or $50.00 whichever is greater. The payment will be due on the last day of every month.

  5. Minimum draft allowed is $500.00

  6. Minimum inital credit line is $5,000.00.

  7. Required mortgage "1st or 2nd" on primary residence.

  8. Copy of property insurance on file.

  9. The maximum annual percentage rate that can apply is 18.00%. The minimum APR is 2%. The minimum rate is temporary and will apply until further notice, the Credit Union reserves the right to increase the floor back to the contract rate on 7% in the future.

  10. The home equity loan is renewed on an annual basis.

  11. Line of credit is determined by using the following example:

    Current Town evaluation or appraisal (whichever is greater) $50,000.00
    Multiply by 80% X .80
       
      = $40,000.00
    Deduct first mortgage balance (if any) - $15,000.00
       
    Total lendable equity = $25,000.00


  12. The interest that you pay on a home equity loan may be tax deductible if you are itemizing your deductions. For specific information, please consult with your tax advisor.

  13. The cost for the Title Opinion can range from $85.00 to $1075.00, depending on the location of your home and legal work involved. There are no other fees for this program.

  14. Any home equity loan over $50,000.00 or where the combined debt of a mortgage loan and home equity loan with us exceeds $50,000.00, will require an appraisal. We also may require an appraisal if the value of the town tax evaluation is not enough to give the member the line-of-credit needed. The estimated cost of an appraisal is $400.00.

  15. There will be a $20.00 fee to the member if we request an updated picture and tax evaluation and you do not respond. This update occurs every five years. There will be no fee if you comply with our request.

For more information on our very popular home equity loan, please stop by the Credit Union and speak to one of our Loan Officers.

Online Application

Home Equity Loan Online Application

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